diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetFlowInformationProvider.java b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetFlowInformationProvider.java
index 5375b8e65c2..101d9fec9bc 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetFlowInformationProvider.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetFlowInformationProvider.java
@@ -124,9 +124,9 @@ public class JetFlowInformationProvider {
     }
 
     public void checkFunction(@Nullable JetType expectedReturnType) {
-        Set<JetElement> unreachableElements = collectUnreachableCode();
-        checkDefiniteReturn(expectedReturnType != null ? expectedReturnType : NO_EXPECTED_TYPE, unreachableElements);
-        reportUnreachableCode(unreachableElements);
+        UnreachableCode unreachableCode = collectUnreachableCode();
+        checkDefiniteReturn(expectedReturnType != null ? expectedReturnType : NO_EXPECTED_TYPE, unreachableCode);
+        reportUnreachableCode(unreachableCode);
 
         markTailCalls();
     }
@@ -209,7 +209,7 @@ public class JetFlowInformationProvider {
         }
     }
 
-    public void checkDefiniteReturn(final @NotNull JetType expectedReturnType, @NotNull final Set<JetElement> unreachableElements) {
+    public void checkDefiniteReturn(final @NotNull JetType expectedReturnType, @NotNull final UnreachableCode unreachableCode) {
         assert subroutine instanceof JetDeclarationWithBody;
         JetDeclarationWithBody function = (JetDeclarationWithBody) subroutine;
 
@@ -236,7 +236,7 @@ public class JetFlowInformationProvider {
 
                     if (blockBody && !noExpectedType(expectedReturnType)
                             && !KotlinBuiltIns.getInstance().isUnit(expectedReturnType)
-                            && !unreachableElements.contains(element)) {
+                            && !unreachableCode.getElements().contains(element)) {
                         noReturnError[0] = true;
                     }
                 }
@@ -247,19 +247,17 @@ public class JetFlowInformationProvider {
         }
     }
 
-    private void reportUnreachableCode(@NotNull Set<JetElement> unreachableElements) {
-        // This is needed in order to highlight only '1 < 2' and not '1', '<' and '2' as well
-        Set<JetElement> rootUnreachableElements = JetPsiUtil.findRootExpressions(unreachableElements);
-
-        for (JetElement element : rootUnreachableElements) {
-            trace.report(UNREACHABLE_CODE.on(element));
+    private void reportUnreachableCode(@NotNull UnreachableCode unreachableCode) {
+        for (JetElement element : unreachableCode.getElements()) {
+            trace.report(UNREACHABLE_CODE.on(element, unreachableCode.getUnreachableTextRanges(element)));
         }
     }
 
-    private Set<JetElement> collectUnreachableCode() {
+    @NotNull
+    private UnreachableCode collectUnreachableCode() {
+        Set<JetElement> reachableElements = Sets.newHashSet();
         Set<JetElement> unreachableElements = Sets.newHashSet();
-        for (Instruction instruction : pseudocode.getDeadInstructions()) {
-            if (!PseudocodeUtil.isDeadInAllCopies(instruction)) continue;
+        for (Instruction instruction : pseudocode.getInstructionsIncludingDeadCode()) {
             if (!(instruction instanceof JetElementInstruction)
                     || instruction instanceof LoadUnitValueInstruction
                     || instruction instanceof MergeInstruction
@@ -275,9 +273,14 @@ public class JetFlowInformationProvider {
                 if (!isJumpElement) continue;
             }
 
-            unreachableElements.add(element);
+            if (PseudocodeUtil.isDeadInAllCopies(instruction)) {
+                unreachableElements.add(element);
+            }
+            else {
+                reachableElements.add(element);
+            }
         }
-        return unreachableElements;
+        return new UnreachableCodeImpl(reachableElements, unreachableElements);
     }
 
 ////////////////////////////////////////////////////////////////////////////////
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/UnreachableCode.kt b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/UnreachableCode.kt
new file mode 100644
index 00000000000..b748efdf36a
--- /dev/null
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/UnreachableCode.kt
@@ -0,0 +1,119 @@
+/*
+ * Copyright 2010-2014 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.jet.lang.cfg
+
+import org.jetbrains.jet.lang.psi.JetElement
+import com.intellij.openapi.util.TextRange
+import java.util.HashSet
+import org.jetbrains.jet.lang.psi.JetPsiUtil
+import com.intellij.psi.PsiElement
+import com.intellij.psi.PsiElementVisitor
+import com.intellij.psi.PsiWhiteSpace
+import java.util.ArrayList
+import org.jetbrains.jet.lexer.JetTokens
+import com.intellij.psi.util.PsiTreeUtil
+
+trait UnreachableCode {
+    val elements: Set<JetElement>
+    fun getUnreachableTextRanges(element: JetElement): List<TextRange>
+}
+
+class UnreachableCodeImpl(
+        private val reachableElements: Set<JetElement>,
+        private val unreachableElements: Set<JetElement>
+) : UnreachableCode {
+
+    // This is needed in order to highlight only '1 < 2' and not '1', '<' and '2' as well
+    override val elements = JetPsiUtil.findRootExpressions(unreachableElements)
+
+    override fun getUnreachableTextRanges(element: JetElement): List<TextRange> {
+        return if (element.hasChildrenInSet(reachableElements)) {
+            element.getLeavesOrReachableChildren().removeReachableElementsWithMeaninglessSiblings().mergeAdjacentTextRanges()
+        }
+        else {
+            listOf(element.getTextRange()!!)
+        }
+    }
+
+    private fun JetElement.hasChildrenInSet(set: Set<JetElement>): Boolean {
+        return PsiTreeUtil.collectElements(this) { it != this }.any { it in set }
+    }
+
+    private fun JetElement.getLeavesOrReachableChildren(): List<PsiElement> {
+        val children = ArrayList<PsiElement>()
+        acceptChildren(object : PsiElementVisitor() {
+            override fun visitElement(element: PsiElement) {
+                val isReachable = element is JetElement && reachableElements.contains(element) && !element.hasChildrenInSet(unreachableElements)
+                if (isReachable || element.getChildren().size == 0) {
+                    children.add(element)
+                }
+                else {
+                    element.acceptChildren(this)
+                }
+            }
+        })
+        return children
+    }
+
+    fun List<PsiElement>.removeReachableElementsWithMeaninglessSiblings(): List<PsiElement> {
+        fun PsiElement.isMeaningless() = this is PsiWhiteSpace || this.getNode()?.getElementType() == JetTokens.COMMA
+
+        val childrenToRemove = HashSet<PsiElement>()
+        fun collectSiblingsIfMeaningless(elementIndex: Int, direction: Int) {
+            val index = elementIndex + direction
+            if (index !in 0..(size() - 1)) return
+
+            val element = this[index]
+            if (element.isMeaningless()) {
+                childrenToRemove.add(element)
+                collectSiblingsIfMeaningless(index, direction)
+            }
+        }
+        for ((index, element) in this.withIndices()) {
+            if (reachableElements.contains(element)) {
+                childrenToRemove.add(element)
+                collectSiblingsIfMeaningless(index, -1)
+                collectSiblingsIfMeaningless(index, 1)
+            }
+        }
+        return this.filter { it !in childrenToRemove }
+    }
+
+
+    private fun List<PsiElement>.mergeAdjacentTextRanges(): List<TextRange> {
+        val result = ArrayList<TextRange>()
+        val lastRange = fold(null: TextRange?) {
+            currentTextRange, element ->
+
+            val elementRange = element.getTextRange()!!
+            if (currentTextRange == null) {
+                elementRange
+            }
+            else if (currentTextRange.getEndOffset() == elementRange.getStartOffset()) {
+                currentTextRange.union(elementRange)
+            }
+            else {
+                result.add(currentTextRange)
+                elementRange
+            }
+        }
+        if (lastRange != null) {
+            result.add(lastRange)
+        }
+        return result
+    }
+}
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/AbstractDiagnostic.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/AbstractDiagnostic.java
index 598049b6c5a..8616757045f 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/AbstractDiagnostic.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/AbstractDiagnostic.java
@@ -27,6 +27,7 @@ public abstract class AbstractDiagnostic<E extends PsiElement> implements Parame
     private final E psiElement;
     private final DiagnosticFactoryWithPsiElement<E, ?> factory;
     private final Severity severity;
+    private List<TextRange> textRanges;
 
     public AbstractDiagnostic(@NotNull E psiElement,
             @NotNull DiagnosticFactoryWithPsiElement<E, ?> factory,
@@ -63,6 +64,9 @@ public abstract class AbstractDiagnostic<E extends PsiElement> implements Parame
     @Override
     @NotNull
     public List<TextRange> getTextRanges() {
+        if (textRanges != null) {
+            return textRanges;
+        }
         return getFactory().getTextRanges(this);
     }
 
@@ -71,4 +75,10 @@ public abstract class AbstractDiagnostic<E extends PsiElement> implements Parame
         if (!getFactory().isValid(this)) return false;
         return true;
     }
+
+    @NotNull
+    public Diagnostic setTextRanges(@NotNull List<TextRange> textRanges) {
+        this.textRanges = textRanges;
+        return this;
+    }
 }
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/DiagnosticFactoryWithPsiElement.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/DiagnosticFactoryWithPsiElement.java
index 5a01175740d..a015899f523 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/DiagnosticFactoryWithPsiElement.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/DiagnosticFactoryWithPsiElement.java
@@ -30,7 +30,7 @@ public abstract class DiagnosticFactoryWithPsiElement<E extends PsiElement, D ex
     }
 
     protected List<TextRange> getTextRanges(ParametrizedDiagnostic<E> diagnostic) {
-        return positioningStrategy.mark(diagnostic.getPsiElement());
+        return positioningStrategy.markDiagnostic(diagnostic);
     }
 
     protected boolean isValid(ParametrizedDiagnostic<E> diagnostic) {
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/Errors.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/Errors.java
index 3d0df53cdf9..1620da3f528 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/Errors.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/Errors.java
@@ -17,9 +17,11 @@
 package org.jetbrains.jet.lang.diagnostics;
 
 import com.google.common.collect.ImmutableSet;
+import com.intellij.openapi.util.TextRange;
 import com.intellij.psi.PsiElement;
 import com.intellij.psi.PsiNameIdentifierOwner;
 import com.intellij.psi.impl.source.tree.LeafPsiElement;
+import kotlin.Function1;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.lang.descriptors.*;
 import org.jetbrains.jet.lang.psi.*;
@@ -446,7 +448,13 @@ public interface Errors {
 
     // Control flow / Data flow
 
-    DiagnosticFactory0<JetElement> UNREACHABLE_CODE = DiagnosticFactory0.create(WARNING);
+    DiagnosticFactory1<JetElement, List<TextRange>> UNREACHABLE_CODE = DiagnosticFactory1.create(
+            WARNING, PositioningStrategies.markTextRangesFromDiagnostic(new Function1<Diagnostic, List<TextRange>>() {
+                @Override
+                public List<TextRange> invoke(Diagnostic diagnostic) {
+                    return UNREACHABLE_CODE.cast(diagnostic).getA();
+                }
+            }));
 
     DiagnosticFactory0<JetVariableDeclaration> VARIABLE_WITH_NO_TYPE_NO_INITIALIZER = DiagnosticFactory0.create(ERROR, NAME_IDENTIFIER);
 
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategies.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategies.java
index b472dd4169c..a0e5d07199c 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategies.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategies.java
@@ -23,6 +23,7 @@ import com.intellij.lang.ASTNode;
 import com.intellij.openapi.util.TextRange;
 import com.intellij.psi.PsiElement;
 import com.intellij.psi.PsiNameIdentifierOwner;
+import kotlin.Function1;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.JetNodeTypes;
 import org.jetbrains.jet.lang.psi.*;
@@ -527,6 +528,18 @@ public class PositioningStrategies {
         }
     };
 
+    public static PositioningStrategy<PsiElement> markTextRangesFromDiagnostic(
+            @NotNull final Function1<Diagnostic, List<TextRange>> getTextRanges
+    ) {
+        return new PositioningStrategy<PsiElement>() {
+            @NotNull
+            @Override
+            public List<TextRange> markDiagnostic(@NotNull ParametrizedDiagnostic<? extends PsiElement> diagnostic) {
+                return getTextRanges.invoke(diagnostic);
+            }
+        };
+    }
+
     private PositioningStrategies() {
     }
 }
\ No newline at end of file
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategy.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategy.java
index a149ef32b69..16486f78e7a 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategy.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategy.java
@@ -27,7 +27,12 @@ import java.util.List;
 
 public class PositioningStrategy<E extends PsiElement> {
     @NotNull
-    public List<TextRange> mark(@NotNull E element) {
+    public List<TextRange> markDiagnostic(@NotNull ParametrizedDiagnostic<? extends E> diagnostic) {
+        return mark(diagnostic.getPsiElement());
+    }
+
+    @NotNull
+    protected List<TextRange> mark(@NotNull E element) {
         return markElement(element);
     }
 
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/DefaultErrorMessages.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/DefaultErrorMessages.java
index deace52941b..bb804680559 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/DefaultErrorMessages.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/DefaultErrorMessages.java
@@ -212,7 +212,7 @@ public class DefaultErrorMessages {
         MAP.put(INITIALIZATION_USING_BACKING_FIELD_OPEN_SETTER,
                 "Setter of this property can be overridden, so initialization using backing field required", NAME);
 
-        MAP.put(UNREACHABLE_CODE, "Unreachable code");
+        MAP.put(UNREACHABLE_CODE, "Unreachable code", TO_STRING);
 
         MAP.put(MANY_CLASS_OBJECTS, "Only one class object is allowed per class");
         MAP.put(CLASS_OBJECT_NOT_ALLOWED, "A class object is not allowed here");
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
index b15e9a82b6a..71b008af17d 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
@@ -661,7 +661,7 @@ public class BasicExpressionTypingVisitor extends ExpressionTypingVisitor {
         JetType result;
         if (operationType == JetTokens.PLUSPLUS || operationType == JetTokens.MINUSMINUS) {
             assert returnType != null : "returnType is null for " + resolutionResults.getResultingDescriptor();
-            if (JetTypeChecker.INSTANCE.isSubtypeOf(returnType, KotlinBuiltIns.getInstance().getUnitType())) {
+            if (KotlinBuiltIns.getInstance().isUnit(returnType)) {
                 result = ErrorUtils.createErrorType(KotlinBuiltIns.getInstance().getUnit().getName().asString());
                 context.trace.report(INC_DEC_SHOULD_NOT_RETURN_UNIT.on(operationSign));
             }
diff --git a/compiler/testData/diagnostics/tests/FunctionReturnTypes.kt b/compiler/testData/diagnostics/tests/FunctionReturnTypes.kt
index a73b71e57f2..d4e0fbdcfcc 100644
--- a/compiler/testData/diagnostics/tests/FunctionReturnTypes.kt
+++ b/compiler/testData/diagnostics/tests/FunctionReturnTypes.kt
@@ -1,3 +1,5 @@
+// !DIAGNOSTICS: -UNREACHABLE_CODE
+
 fun none() {}
 
 fun unitEmptyInfer() {}
@@ -51,7 +53,7 @@ fun blockAndAndMismatch1() : Int {
   return <!TYPE_MISMATCH!>true && false<!>
 }
 fun blockAndAndMismatch2() : Int {
-  <!UNREACHABLE_CODE!>(return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>true<!>) && (return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>false<!>)<!>
+  (return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>true<!>) && (return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>false<!>)
 }
 
 fun blockAndAndMismatch3() : Int {
@@ -61,7 +63,7 @@ fun blockAndAndMismatch4() : Int {
   return <!TYPE_MISMATCH!>true || false<!>
 }
 fun blockAndAndMismatch5() : Int {
-  <!UNREACHABLE_CODE!>(return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>true<!>) || (return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>false<!>)<!>
+  (return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>true<!>) || (return <!CONSTANT_EXPECTED_TYPE_MISMATCH!>false<!>)
 }
 fun blockReturnValueTypeMatch1() : Int {
   return if (1 > 2) <!CONSTANT_EXPECTED_TYPE_MISMATCH!>1.0<!> else <!CONSTANT_EXPECTED_TYPE_MISMATCH!>2.0<!>
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/commasAndWhitespaces.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/commasAndWhitespaces.kt
new file mode 100644
index 00000000000..a32de3a361c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/commasAndWhitespaces.kt
@@ -0,0 +1,12 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun testCommasAndWhitespaces() {
+    fun bar(i: Int, s: String, x: Any) {}
+
+    <!UNREACHABLE_CODE!>bar(<!> 1 , todo() , <!UNREACHABLE_CODE!>"" )<!>
+}
+
+fun todo() = throw Exception()
+
+
+
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCallInInvokeCall.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCallInInvokeCall.kt
new file mode 100644
index 00000000000..9285b7122f1
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCallInInvokeCall.kt
@@ -0,0 +1,11 @@
+fun testInvoke() {
+    fun Nothing.invoke() = this
+    todo()<!UNREACHABLE_CODE!>()<!>
+}
+
+fun testInvokeWithLambda() {
+    fun Nothing.invoke(<!UNUSED_PARAMETER!>i<!>: Int, f: () -> Int) = f
+    todo()<!UNREACHABLE_CODE!>(1){ 42 }<!>
+}
+
+fun todo() = throw Exception()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCallInReceiver.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCallInReceiver.kt
new file mode 100644
index 00000000000..bce9404313e
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCallInReceiver.kt
@@ -0,0 +1,11 @@
+fun test11() {
+    fun Any.bar(<!UNUSED_PARAMETER!>i<!>: Int) {}
+    todo().<!UNREACHABLE_CODE!>bar(1)<!>
+}
+
+fun test12() {
+    fun Any.bar(<!UNUSED_PARAMETER!>i<!>: Int) {}
+    todo()<!UNNECESSARY_SAFE_CALL!>?.<!><!UNREACHABLE_CODE!>bar(1)<!>
+}
+
+fun todo() = throw Exception()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/UnreachableCode.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeDifferentExamples.kt
similarity index 84%
rename from compiler/testData/diagnostics/tests/UnreachableCode.kt
rename to compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeDifferentExamples.kt
index e79c920e843..627bbd0fd81 100644
--- a/compiler/testData/diagnostics/tests/UnreachableCode.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeDifferentExamples.kt
@@ -1,3 +1,4 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER -UNUSED_EXPRESSION
 
 fun t1() : Int{
   return 0
@@ -46,7 +47,7 @@ fun t3() : Any {
   <!UNREACHABLE_CODE!>1<!>
 }
 
-fun t4(<!UNUSED_PARAMETER!>a<!> : Boolean) : Int {
+fun t4(a : Boolean) : Int {
   do {
     return 1
   }
@@ -54,7 +55,7 @@ fun t4(<!UNUSED_PARAMETER!>a<!> : Boolean) : Int {
   <!UNREACHABLE_CODE!>1<!>
 }
 
-fun t4break(<!UNUSED_PARAMETER!>a<!> : Boolean) : Int {
+fun t4break(a : Boolean) : Int {
   do {
     break
   }
@@ -109,7 +110,7 @@ fun t7() : Int {
     <!UNREACHABLE_CODE!>2<!>
   }
   catch (<!TYPE_MISMATCH!>e : Any<!>) {
-    <!UNUSED_EXPRESSION!>2<!>
+    2
   }
   return 1 // this is OK, like in Java
 }
@@ -127,16 +128,16 @@ fun t8() : Int {
 }
 
 fun blockAndAndMismatch() : Boolean {
-  <!UNREACHABLE_CODE!>(return true) || (return false)<!>
+  (return true) <!UNREACHABLE_CODE!>|| (return false)<!>
   <!UNREACHABLE_CODE!>return true<!>
 }
 
 fun tf() : Int {
-  try {<!UNREACHABLE_CODE!>return 1<!>} finally{return 1}
+  try {<!UNREACHABLE_CODE!>return<!> 1} finally{return 1}
   <!UNREACHABLE_CODE!>return 1<!>
 }
 
-fun failtest(<!UNUSED_PARAMETER!>a<!> : Int) : Int {
+fun failtest(a : Int) : Int {
   if (fail() || <!UNREACHABLE_CODE!>true<!>) <!UNREACHABLE_CODE!>{
 
   }<!>
@@ -144,8 +145,8 @@ fun failtest(<!UNUSED_PARAMETER!>a<!> : Int) : Int {
 }
 
 fun foo(a : Nothing) : Unit {
-  <!UNUSED_EXPRESSION!>1<!>
-  <!UNUSED_EXPRESSION!>a<!>
+  1
+  a
   <!UNREACHABLE_CODE!>2<!>
 }
 
@@ -161,7 +162,7 @@ fun nullIsNotNothing() : Unit {
     fail()
 }
 
-fun returnInWhile(<!UNUSED_PARAMETER!>a<!>: Int) {
+fun returnInWhile(a: Int) {
     do {return}
     while (<!UNREACHABLE_CODE!>1 > a<!>)
 }
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/DeadCode.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeFromDifferentSources.kt
similarity index 78%
rename from compiler/testData/diagnostics/tests/controlFlowAnalysis/DeadCode.kt
rename to compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeFromDifferentSources.kt
index 0cd3fb77b75..63c2571b0ca 100644
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/DeadCode.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeFromDifferentSources.kt
@@ -1,7 +1,7 @@
 package c
 
 fun test1() {
-    <!UNREACHABLE_CODE!>val <!UNUSED_VARIABLE!>r<!>: Nothing = null!!<!>
+    <!UNREACHABLE_CODE!>val <!UNUSED_VARIABLE!>r<!>: Nothing =<!> null!!
 }
 
 fun test2(a: A) {
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInArrayAccess.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInArrayAccess.kt
new file mode 100644
index 00000000000..b9109c096c9
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInArrayAccess.kt
@@ -0,0 +1,40 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun testArrayAccess1(array: Array<Any>) {
+    array<!UNREACHABLE_CODE!>[<!>todo()<!UNREACHABLE_CODE!>]<!>
+}
+
+fun testArrayAccess2() {
+    fun Nothing.get(i: Int, s: String) {}
+    todo()<!UNREACHABLE_CODE!>[1, ""]<!>
+}
+
+fun testAraryAccess3() {
+    fun Nothing.get(n: Nothing) {}
+    todo()<!UNREACHABLE_CODE!>[todo()]<!>
+}
+
+fun testArrayAssignment1(array: Array<Any>) {
+    array[todo()] <!UNREACHABLE_CODE!>= 11<!>
+}
+
+fun testArrayAssignment2(array: Array<Any>) {
+    array[1] <!UNREACHABLE_CODE!>=<!> todo()
+}
+
+fun testArrayAssignment3(n: Nothing) {
+    fun Nothing.set(i: Int, j: Int) {}
+    n<!UNREACHABLE_CODE!>[1] = 2<!>
+}
+
+fun testArrayAssignment4(n: Nothing) {
+    fun Nothing.set(i: Int, a: Any) {}
+    n<!UNREACHABLE_CODE!>[1] = todo()<!>
+}
+
+fun testArrayPlusAssign(array: Array<Any>) {
+    fun Any.plusAssign(a: Any) {}
+    array[1] <!UNREACHABLE_CODE!>+=<!> todo()
+}
+
+fun todo() = throw Exception()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInAssignment.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInAssignment.kt
new file mode 100644
index 00000000000..85e9e23aaf0
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInAssignment.kt
@@ -0,0 +1,18 @@
+fun testAssignment() {
+    var <!UNUSED_VARIABLE!>a<!> = 1
+    <!UNREACHABLE_CODE!>a =<!> todo()
+}
+
+fun testVariableDeclaration() {
+    <!UNREACHABLE_CODE!>val <!UNUSED_VARIABLE!>a<!> =<!> todo()
+}
+
+fun testPlusAssign() {
+    fun Int.plusAssign(<!UNUSED_PARAMETER!>i<!>: Int) {}
+
+    var a = 1
+    a <!UNREACHABLE_CODE!>+=<!> todo()
+}
+
+
+fun todo() = throw Exception()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInBinaryExpressions.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInBinaryExpressions.kt
new file mode 100644
index 00000000000..42b4727af76
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInBinaryExpressions.kt
@@ -0,0 +1,39 @@
+fun testBinary1() {
+    fun Int.times(<!UNUSED_PARAMETER!>s<!>: String) {}
+
+    todo() <!UNREACHABLE_CODE!>* ""<!>
+}
+fun testBinary2() {
+    "1" <!UNREACHABLE_CODE!>+<!> todo()
+}
+
+fun testElvis1() {
+    <!USELESS_ELVIS!>todo()<!> <!UNREACHABLE_CODE!>?: ""<!>
+}
+
+fun testElvis2(s: String?) {
+    s ?: todo()
+
+    bar()
+}
+
+fun testAnd1(b: Boolean) {
+    b && todo()
+
+    bar()
+}
+
+fun testAnd2(<!UNUSED_PARAMETER!>b<!>: Boolean) {
+    todo() <!UNREACHABLE_CODE!>&& b<!>
+}
+
+fun returnInBinary1(): Boolean {
+    (return true) <!UNREACHABLE_CODE!>&& (return false)<!>
+}
+
+fun returnInBinary2(): Boolean {
+    (return true) <!UNREACHABLE_CODE!>|| (return false)<!>
+}
+
+fun todo() = throw Exception()
+fun bar() {}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInCalls.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInCalls.kt
new file mode 100644
index 00000000000..6bc59d6867a
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInCalls.kt
@@ -0,0 +1,13 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun testArgumentInCall() {
+    fun bar(i: Int, s: String, x: Any) {}
+
+    <!UNREACHABLE_CODE!>bar(<!>1, todo(), <!UNREACHABLE_CODE!>"")<!>
+}
+
+fun testArgumentInVariableAsFunctionCall(f: (Any) -> Unit) {
+    f<!UNREACHABLE_CODE!>(<!>todo()<!UNREACHABLE_CODE!>)<!>
+}
+
+fun todo() = throw Exception()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInDeadCode.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInDeadCode.kt
new file mode 100644
index 00000000000..53001d49508
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInDeadCode.kt
@@ -0,0 +1,24 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun unreachable0() {
+    return
+    <!UNREACHABLE_CODE!>return todo()<!>
+}
+
+fun unreachable2() {
+    return
+    <!UNREACHABLE_CODE!>val a = todo()<!>
+}
+
+fun unreachable3() {
+    return
+    <!UNREACHABLE_CODE!>bar(todo())<!>
+}
+
+fun unreachable4(array: Array<Any>) {
+    return
+    <!UNREACHABLE_CODE!>array[todo()]<!>
+}
+
+fun bar(a: Any) {}
+fun todo() = throw Exception()
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInIf.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInIf.kt
new file mode 100644
index 00000000000..283281aecc3
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInIf.kt
@@ -0,0 +1,12 @@
+fun testIf() {
+    if (todo()) <!UNREACHABLE_CODE!>1<!> else <!UNREACHABLE_CODE!>2<!>
+}
+
+fun testIf1(b: Boolean) {
+    if (b) todo() else 1
+
+    bar()
+}
+
+fun todo() = throw Exception()
+fun bar() {}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInInnerExpressions.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInInnerExpressions.kt
new file mode 100644
index 00000000000..16f1395f857
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInInnerExpressions.kt
@@ -0,0 +1,13 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun testCompound() {
+    fun Nothing.get(i: Int) {}
+    todo()<!UNREACHABLE_CODE!><!UNNECESSARY_NOT_NULL_ASSERTION!>!!<!>[12]<!>
+}
+
+fun testCompound1() {
+    fun Int.times(s: String): Array<String> = throw Exception()
+    <!UNREACHABLE_CODE!>(<!>todo() <!UNREACHABLE_CODE!>* "")[1]<!>
+}
+
+fun todo() = throw Exception()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInLocalDeclarations.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInLocalDeclarations.kt
new file mode 100644
index 00000000000..db437307072
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInLocalDeclarations.kt
@@ -0,0 +1,36 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun testObject() {
+    <!UNREACHABLE_CODE!>object : Foo(<!>todo()<!UNREACHABLE_CODE!>) {
+        fun foo() = 1
+    }<!>
+}
+
+fun testObjectExpression() {
+    <!UNREACHABLE_CODE!>val <!UNUSED_VARIABLE!>a<!>  = object : Foo(<!>todo()<!UNREACHABLE_CODE!>) {
+        fun foo() = 1
+    }<!>
+}
+
+fun testObjectExpression1() {
+    fun bar(i: Int, x: Any) {}
+
+    <!UNREACHABLE_CODE!>bar(<!>1, <!UNREACHABLE_CODE!>object : Foo(<!>todo()<!UNREACHABLE_CODE!>) {
+        fun foo() = 1
+    })<!>
+}
+
+fun testClassDeclaration() {
+    class C : Foo(todo()) {}
+
+    <!UNREACHABLE_CODE!>bar()<!>
+}
+
+fun testFunctionDefaultArgument() {
+    fun foo(x: Int = todo()) { bar() }
+}
+
+open class Foo(i: Int) {}
+
+fun todo() = throw Exception()
+fun bar() {}
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInLoops.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInLoops.kt
new file mode 100644
index 00000000000..f5f85117c8c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInLoops.kt
@@ -0,0 +1,21 @@
+fun testFor() {
+    fun Nothing.iterator() = (0..1).iterator()
+
+    <!UNREACHABLE_CODE!>for (i in<!> todo()<!UNREACHABLE_CODE!>) {}<!>
+}
+
+fun testWhile() {
+    <!UNREACHABLE_CODE!>while (<!>todo()<!UNREACHABLE_CODE!>) {
+    }<!>
+}
+
+fun testDoWhile() {
+    do {
+
+    } while(todo())
+
+    <!UNREACHABLE_CODE!>bar()<!>
+}
+
+fun todo() = throw Exception()
+fun bar() {}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInReturn.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInReturn.kt
new file mode 100644
index 00000000000..d8574db97a2
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInReturn.kt
@@ -0,0 +1,5 @@
+fun testReturn() {
+    <!UNREACHABLE_CODE!>return<!> todo()
+}
+
+fun todo() = throw Exception()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInUnaryExpr.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInUnaryExpr.kt
new file mode 100644
index 00000000000..1d158e012d2
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInUnaryExpr.kt
@@ -0,0 +1,15 @@
+fun testPrefix() {
+    fun Any.not() {}
+    <!UNREACHABLE_CODE!>!<!>todo()
+}
+
+fun testPostfixWithCall(n: Nothing) {
+    fun Nothing.inc(): Nothing = this
+    n<!UNREACHABLE_CODE!>++<!>
+}
+
+fun testPostfixSpecial() {
+    todo()<!UNNECESSARY_NOT_NULL_ASSERTION, UNREACHABLE_CODE!>!!<!>
+}
+
+fun todo() = throw Exception()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/unreachableCode.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInWhileFromBreak.kt
similarity index 68%
rename from compiler/testData/diagnostics/tests/controlFlowAnalysis/unreachableCode.kt
rename to compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInWhileFromBreak.kt
index 431865396f2..978ee032ac0 100644
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/unreachableCode.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInWhileFromBreak.kt
@@ -3,20 +3,20 @@ fun bar(<!UNUSED_PARAMETER!>a<!>: Any, <!UNUSED_PARAMETER!>b<!>: Any) {}
 
 fun test(arr: Array<Int>) {
     while (true) {
-        <!UNREACHABLE_CODE!>foo<!>(break)
+        <!UNREACHABLE_CODE!>foo(<!>break<!UNREACHABLE_CODE!>)<!>
     }
 
 
     while (true) {
-        <!UNREACHABLE_CODE!>bar<!>(arr, break)
+        <!UNREACHABLE_CODE!>bar(<!>arr, break<!UNREACHABLE_CODE!>)<!>
     }
 
     while (true) {
-        <!UNREACHABLE_CODE!>arr[break]<!>
+        arr<!UNREACHABLE_CODE!>[<!>break<!UNREACHABLE_CODE!>]<!>
     }
 
     while (true) {
-        <!UNREACHABLE_CODE!>arr[1] = break<!>
+        arr[1] <!UNREACHABLE_CODE!>=<!> break
     }
 
     while (true) {
@@ -32,7 +32,7 @@ fun test(arr: Array<Int>) {
 
     while (true) {
         var <!UNUSED_VARIABLE!>x<!> = 1
-        <!UNREACHABLE_CODE!>x = break<!>
+        <!UNREACHABLE_CODE!>x =<!> break
     }
 
     // TODO: bug, should be fixed in CFA
@@ -50,6 +50,6 @@ fun test(arr: Array<Int>) {
     }
 
     while (true) {
-        <!USELESS_ELVIS!>break<!> ?: <!UNREACHABLE_CODE!>null<!>
+        <!USELESS_ELVIS!>break<!> <!UNREACHABLE_CODE!>?: null<!>
     }
 }
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_1.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_1.kt
similarity index 80%
rename from compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_1.kt
rename to compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_1.kt
index 185066d307b..2bd2e6bd6c6 100644
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_1.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_1.kt
@@ -2,7 +2,7 @@
 
 fun foo(x: String): String {
     try {
-        <!UNREACHABLE_CODE!>throw RuntimeException()<!>
+        <!UNREACHABLE_CODE!>throw<!> RuntimeException()
     } finally {
         try {
         } catch (e: Exception) {
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_2.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_2.kt
similarity index 88%
rename from compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_2.kt
rename to compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_2.kt
index 8b6d9f6ed9a..638e2fe6759 100644
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_2.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_2.kt
@@ -2,7 +2,7 @@
 
 fun foo() {
     try {
-        <!UNREACHABLE_CODE!>throw RuntimeException()<!>
+        <!UNREACHABLE_CODE!>throw<!> RuntimeException()
     } catch (e: Exception) {
         <!UNREACHABLE_CODE!>return<!>     // <- Wrong UNREACHABLE_CODE
     } finally {
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_3.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_3.kt
similarity index 78%
rename from compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_3.kt
rename to compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_3.kt
index f2f917ceda4..b2b68a84a96 100644
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_3.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_3.kt
@@ -2,7 +2,7 @@
 
 fun foo(<!UNUSED_PARAMETER!>x<!>: String): String {
     try {
-        <!UNREACHABLE_CODE!>throw RuntimeException()<!> //should be marked as unreachable, but is not
+        <!UNREACHABLE_CODE!>throw<!> RuntimeException() //should be marked as unreachable, but is not
     } finally {
         throw NullPointerException()
     }
diff --git a/compiler/testData/diagnostics/tests/controlStructures/kt770.kt351.kt735_StatementType.kt b/compiler/testData/diagnostics/tests/controlStructures/kt770.kt351.kt735_StatementType.kt
index 7f5528485b6..0b4e3efab96 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/kt770.kt351.kt735_StatementType.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/kt770.kt351.kt735_StatementType.kt
@@ -1,3 +1,4 @@
+// !DIAGNOSTICS: -UNREACHABLE_CODE
 package kt770_351_735
 
 
@@ -120,9 +121,9 @@ fun testStatementInExpressionContext() {
     val <!UNUSED_VARIABLE!>a1<!>: Unit = <!ASSIGNMENT_IN_EXPRESSION_CONTEXT!>z = <!UNUSED_VALUE!>334<!><!>
     val <!UNUSED_VARIABLE!>f<!> = <!EXPRESSION_EXPECTED!>for (i in 1..10) {}<!>
     if (true) return <!ASSIGNMENT_IN_EXPRESSION_CONTEXT!>z = <!UNUSED_VALUE!>34<!><!>
-    <!UNREACHABLE_CODE!>return <!EXPRESSION_EXPECTED!>while (true) {}<!><!>
+    return <!EXPRESSION_EXPECTED!>while (true) {}<!>
 }
 
 fun testStatementInExpressionContext2() {
-    <!UNREACHABLE_CODE!>val <!UNUSED_VARIABLE!>a2<!>: Unit = <!EXPRESSION_EXPECTED!>while(true) {}<!><!>
+    val <!UNUSED_VARIABLE!>a2<!>: Unit = <!EXPRESSION_EXPECTED!>while(true) {}<!>
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlStructures/tryReturnType.kt b/compiler/testData/diagnostics/tests/controlStructures/tryReturnType.kt
index a61bf21605b..58f53253516 100644
--- a/compiler/testData/diagnostics/tests/controlStructures/tryReturnType.kt
+++ b/compiler/testData/diagnostics/tests/controlStructures/tryReturnType.kt
@@ -5,7 +5,7 @@ fun foo() : Int {
         doSmth()
     }
     catch (e: Exception) {
-        <!UNREACHABLE_CODE!>return <!TYPE_MISMATCH!>""<!><!>
+        <!UNREACHABLE_CODE!>return<!> <!TYPE_MISMATCH!>""<!>
     }
     finally {
         return <!TYPE_MISMATCH!>""<!>
diff --git a/compiler/testData/diagnostics/tests/inference/regressions/kt2445.kt b/compiler/testData/diagnostics/tests/inference/regressions/kt2445.kt
index 34eb3099f80..2f9e0da3fab 100644
--- a/compiler/testData/diagnostics/tests/inference/regressions/kt2445.kt
+++ b/compiler/testData/diagnostics/tests/inference/regressions/kt2445.kt
@@ -1,3 +1,4 @@
+// !DIAGNOSTICS: -UNREACHABLE_CODE
 //KT-2445 Calling method with function with generic parameter causes compile-time exception
 package a
 
@@ -7,4 +8,4 @@ fun main(args: Array<String>) {
     }
 }
 
-fun test<R>(callback: (R) -> Unit):Unit = <!UNREACHABLE_CODE!>callback<!>(null!!)
\ No newline at end of file
+fun test<R>(callback: (R) -> Unit):Unit = callback(null!!)
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inference/regressions/kt2838.kt b/compiler/testData/diagnostics/tests/inference/regressions/kt2838.kt
index 33518f5f228..23ff0757a4b 100644
--- a/compiler/testData/diagnostics/tests/inference/regressions/kt2838.kt
+++ b/compiler/testData/diagnostics/tests/inference/regressions/kt2838.kt
@@ -1,3 +1,4 @@
+// !DIAGNOSTICS: -UNREACHABLE_CODE
 //KT-2838 Type inference failed on passing null as a nullable argument
 package a
 
@@ -9,9 +10,9 @@ fun test(a: Int) {
     bar(a, <!NULL_FOR_NONNULL_TYPE!>null<!>)
 }
 fun test1(a: Int) {
-    <!UNREACHABLE_CODE!>foo<!>(a, throw Exception())
+    foo(a, throw Exception())
 }
 
 fun test2(a: Int) {
-    <!UNREACHABLE_CODE!>bar<!>(a, throw Exception())
+    bar(a, throw Exception())
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/regressions/kt58.kt b/compiler/testData/diagnostics/tests/regressions/kt58.kt
index 665fa7ad48e..9ed3897e281 100644
--- a/compiler/testData/diagnostics/tests/regressions/kt58.kt
+++ b/compiler/testData/diagnostics/tests/regressions/kt58.kt
@@ -17,7 +17,7 @@ fun lock<T>(lock : Lock, body :  () -> T) : T {
 //more tests
 fun t1() : Int {
     try {
-        <!UNREACHABLE_CODE!>return 1<!>
+        <!UNREACHABLE_CODE!>return<!> 1
     }
     finally {
         return 2
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 8d9b77441ed..789dbd81b1e 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -469,11 +469,6 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
             doTest("compiler/testData/diagnostics/tests/UnitValue.kt");
         }
         
-        @TestMetadata("UnreachableCode.kt")
-        public void testUnreachableCode() throws Exception {
-            doTest("compiler/testData/diagnostics/tests/UnreachableCode.kt");
-        }
-        
         @TestMetadata("Unresolved.kt")
         public void testUnresolved() throws Exception {
             doTest("compiler/testData/diagnostics/tests/Unresolved.kt");
@@ -1239,7 +1234,7 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
         }
         
         @TestMetadata("compiler/testData/diagnostics/tests/controlFlowAnalysis")
-        @InnerTestClasses({ControlFlowAnalysis.DefiniteReturn.class})
+        @InnerTestClasses({ControlFlowAnalysis.DeadCode.class, ControlFlowAnalysis.DefiniteReturn.class})
         public static class ControlFlowAnalysis extends AbstractJetDiagnosticsTest {
             public void testAllFilesPresentInControlFlowAnalysis() throws Exception {
                 JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), "org.jetbrains.jet.generators.tests.TestsPackage", new File("compiler/testData/diagnostics/tests/controlFlowAnalysis"), Pattern.compile("^(.+)\\.kt$"), true);
@@ -1260,11 +1255,6 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/checkPropertyAccessor.kt");
             }
             
-            @TestMetadata("DeadCode.kt")
-            public void testDeadCode() throws Exception {
-                doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/DeadCode.kt");
-            }
-            
             @TestMetadata("definiteReturnInWhen.kt")
             public void testDefiniteReturnInWhen() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/definiteReturnInWhen.kt");
@@ -1340,21 +1330,6 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2369.kt");
             }
             
-            @TestMetadata("kt2585_1.kt")
-            public void testKt2585_1() throws Exception {
-                doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_1.kt");
-            }
-            
-            @TestMetadata("kt2585_2.kt")
-            public void testKt2585_2() throws Exception {
-                doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_2.kt");
-            }
-            
-            @TestMetadata("kt2585_3.kt")
-            public void testKt2585_3() throws Exception {
-                doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2585_3.kt");
-            }
-            
             @TestMetadata("kt2845.kt")
             public void testKt2845() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2845.kt");
@@ -1455,16 +1430,119 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/UninitializedOrReassignedVariables.kt");
             }
             
-            @TestMetadata("unreachableCode.kt")
-            public void testUnreachableCode() throws Exception {
-                doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/unreachableCode.kt");
-            }
-            
             @TestMetadata("varInitializationInIfInCycle.kt")
             public void testVarInitializationInIfInCycle() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/varInitializationInIfInCycle.kt");
             }
             
+            @TestMetadata("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode")
+            public static class DeadCode extends AbstractJetDiagnosticsTest {
+                public void testAllFilesPresentInDeadCode() throws Exception {
+                    JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), "org.jetbrains.jet.generators.tests.TestsPackage", new File("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode"), Pattern.compile("^(.+)\\.kt$"), true);
+                }
+                
+                @TestMetadata("commasAndWhitespaces.kt")
+                public void testCommasAndWhitespaces() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/commasAndWhitespaces.kt");
+                }
+                
+                @TestMetadata("deadCallInInvokeCall.kt")
+                public void testDeadCallInInvokeCall() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCallInInvokeCall.kt");
+                }
+                
+                @TestMetadata("deadCallInReceiver.kt")
+                public void testDeadCallInReceiver() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCallInReceiver.kt");
+                }
+                
+                @TestMetadata("deadCodeDifferentExamples.kt")
+                public void testDeadCodeDifferentExamples() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeDifferentExamples.kt");
+                }
+                
+                @TestMetadata("deadCodeFromDifferentSources.kt")
+                public void testDeadCodeFromDifferentSources() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeFromDifferentSources.kt");
+                }
+                
+                @TestMetadata("deadCodeInArrayAccess.kt")
+                public void testDeadCodeInArrayAccess() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInArrayAccess.kt");
+                }
+                
+                @TestMetadata("deadCodeInAssignment.kt")
+                public void testDeadCodeInAssignment() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInAssignment.kt");
+                }
+                
+                @TestMetadata("deadCodeInBinaryExpressions.kt")
+                public void testDeadCodeInBinaryExpressions() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInBinaryExpressions.kt");
+                }
+                
+                @TestMetadata("deadCodeInCalls.kt")
+                public void testDeadCodeInCalls() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInCalls.kt");
+                }
+                
+                @TestMetadata("deadCodeInDeadCode.kt")
+                public void testDeadCodeInDeadCode() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInDeadCode.kt");
+                }
+                
+                @TestMetadata("deadCodeInIf.kt")
+                public void testDeadCodeInIf() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInIf.kt");
+                }
+                
+                @TestMetadata("deadCodeInInnerExpressions.kt")
+                public void testDeadCodeInInnerExpressions() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInInnerExpressions.kt");
+                }
+                
+                @TestMetadata("deadCodeInLocalDeclarations.kt")
+                public void testDeadCodeInLocalDeclarations() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInLocalDeclarations.kt");
+                }
+                
+                @TestMetadata("deadCodeInLoops.kt")
+                public void testDeadCodeInLoops() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInLoops.kt");
+                }
+                
+                @TestMetadata("deadCodeInReturn.kt")
+                public void testDeadCodeInReturn() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInReturn.kt");
+                }
+                
+                @TestMetadata("deadCodeInUnaryExpr.kt")
+                public void testDeadCodeInUnaryExpr() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInUnaryExpr.kt");
+                }
+                
+                @TestMetadata("deadCodeInWhileFromBreak.kt")
+                public void testDeadCodeInWhileFromBreak() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/deadCodeInWhileFromBreak.kt");
+                }
+                
+                @TestMetadata("kt2585_1.kt")
+                public void testKt2585_1() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_1.kt");
+                }
+                
+                @TestMetadata("kt2585_2.kt")
+                public void testKt2585_2() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_2.kt");
+                }
+                
+                @TestMetadata("kt2585_3.kt")
+                public void testKt2585_3() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/deadCode/kt2585_3.kt");
+                }
+                
+            }
+            
             @TestMetadata("compiler/testData/diagnostics/tests/controlFlowAnalysis/definiteReturn")
             public static class DefiniteReturn extends AbstractJetDiagnosticsTest {
                 public void testAllFilesPresentInDefiniteReturn() throws Exception {
@@ -1491,6 +1569,7 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
             public static Test innerSuite() {
                 TestSuite suite = new TestSuite("ControlFlowAnalysis");
                 suite.addTestSuite(ControlFlowAnalysis.class);
+                suite.addTestSuite(DeadCode.class);
                 suite.addTestSuite(DefiniteReturn.class);
                 return suite;
             }
diff --git a/idea/testData/checker/FunctionReturnTypes.kt b/idea/testData/checker/FunctionReturnTypes.kt
index f10d48a1d5d..6ec18678986 100644
--- a/idea/testData/checker/FunctionReturnTypes.kt
+++ b/idea/testData/checker/FunctionReturnTypes.kt
@@ -48,7 +48,7 @@ fun blockAndAndMismatch1() : Int {
   return <error>true && false</error>
 }
 fun blockAndAndMismatch2() : Int {
-  <warning>(return <error>true</error>) && (return <error>false</error>)</warning>
+  (return <error>true</error>) <warning>&& (return <error>false</error>)</warning>
 }
 
 fun blockAndAndMismatch3() : Int {
@@ -58,7 +58,7 @@ fun blockAndAndMismatch4() : Int {
   return <error>true || false</error>
 }
 fun blockAndAndMismatch5() : Int {
-  <warning>(return <error>true</error>) || (return <error>false</error>)</warning>
+  (return <error>true</error>) <warning>|| (return <error>false</error>)</warning>
 }
 fun blockReturnValueTypeMatch1() : Int {
   return if (1 > 2) <error>1.0</error> else <error>2.0</error>
diff --git a/idea/testData/checker/UnreachableCode.kt b/idea/testData/checker/UnreachableCode.kt
index a98db2ae881..70599cadac0 100644
--- a/idea/testData/checker/UnreachableCode.kt
+++ b/idea/testData/checker/UnreachableCode.kt
@@ -126,12 +126,12 @@ fun t8() : Int {
 }
 
 fun blockAndAndMismatch() : Boolean {
-  <warning>(return true) || (return false)</warning>
+  (return true) <warning>|| (return false)</warning>
   <warning>return true</warning>
 }
 
 fun tf() : Int {
-  try {<warning>return 1</warning>} finally{return 1}
+  try {<warning>return</warning> 1} finally{return 1}
   <warning>return 1</warning>
 }